Chris, a Consultant, entered into a services agreement with Olivia, the owner of a marketing research company, in which Chris agreed to provide his services to Olivia’s company for 30 hours each week during the month of March. On March 1st, the start date of the contract, Chris does not show up at Olivia’s offices, instead he sends an email in which he tells Olivia that he has decided not to do the project and instead will spend the month in Hawaii. Olivia engages a recruiter to find a replacement consultant to cover the project. Olivia has to pay the recruiter a fee of $4,000 to find another consultant. If Olivia sues Chris for breach of contract, she can claim the $4,000 payment to the recruiter as

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?